Norwalk, Conn.-based GE Commercial Finance last week announced it acted as administrative agent for a $143 million senior secured credit facility to support the acquisition of Coastal Concrete llc, a company acquired by Park Avenue Equity Partners II, llc. GE Capital Markets served as lead arranger and bookrunner.
The financing consisted of a $20 million senior secured revolving credit facility, a $93 million senior secured term loan, and a $30 million unsecured mezzanine loan. Proceeds of the credit facility were used to support Park Avenue’s acquisition of Coastal Concrete as well as to finance its future working capital needs.
Headquartered in Bluffton, S.C., Coastal Concrete is a ready-mixed concrete supplier to residential and commercial customers in South Carolina, Georgia and Florida. Coastal operates a network of 11 permanent ready-mix concrete plants, three mobile concrete plants, and a fleet of 109 front-loading mixer trucks.
“We are delighted to partner with Park Avenue and Coastal’s management team,” said Douglas Cannaliato, senior vice president of GE Antares. “Park Avenue knows this industry well through their previous and very successful investment in Meyer Material. Additionally, Tim Coleman, CEO of Coastal, is an impressive manager with tremendous drive.”
“With the Southeast being one of the strongest areas of demand for construction in the U.S., the ready-mixed concrete industry should continue seeing regional growth,” said Gene Leary, construction industry leader for GE-Corporate Lending. “With $3.5 billion invested in the construction industry, GE is focused on the market and the trends impacting it.”
Park Avenue Equity Partners is a $110 million private equity firm focused on middle-market companies in a wide range of industries.
GE Commercial Finance, which offers businesses around the globe an array of financial products and services, has assets of more than $233 billion.